COFFEE giant Starbucks today said it was looking at its "tax approach" in the UK after coming under fire for paying no corporation tax in the country in the last three years.

The US coffee firm – valued at £25 billion – has generated more than £3 billion of sales in the UK since 1998 but it emerged in October it has paid less than one per cent in corporation tax.

Starbucks, which has more than 700 outlets in the UK, said it was "committed to the UK for the long term" and added: "We are looking at our tax approach in the UK. The company has been in discussions with HMRC for some time and is also in talks with the Treasury."

The company said it would release further details of its UK tax plans this week.

The group reportedly paid just £8.6 million in corporation tax in the UK in the last 14 years.